Staff from both sides of the aisle have been huddling in a series of policy meetings to iron out the remaining disagreements on a sweeping crypto market structure bill. The legislation, formally known as the Digital Asset Market Clarity Act, or the CLARITY Act (H.R. 3633), would represent the most significant overhaul of digital asset regulation in US history.
An updated merged text of the bill, spanning 616 pages, was released on July 22 following substantial input from both the Senate Banking and Agriculture Committees.
Where things stand, and where they’re stuck
Bipartisan staff discussions have centered on ethics provisions, oversight of decentralized finance, how to handle stablecoin yield mechanisms, and the delineation of regulatory authority between the SEC and CFTC.
On the stablecoin front, the question of yield, specifically whether stablecoin issuers should be allowed to pass interest on to holders, has become a flashpoint. The banking industry has been vocal about its opposition to certain provisions, viewing yield-bearing stablecoins as direct competition to traditional deposit products.
The legislative journey so far
The House passed its version back in July 2025 with a bipartisan vote of 294-134.
On the Senate side, the Banking Committee approved the bill on May 14, 2026, by a vote of 15-9. Only two Democrats on the committee voted in favor, which is a problem because Senate procedural rules mean the bill needs at least seven Democratic votes to advance past a filibuster.
Key figures driving the negotiations include Senate Banking Chair Tim Scott, Digital Assets Subcommittee Chair Cynthia Lummis, and Democratic Sens. Ruben Gallego and Angela Alsobrooks.
The CLARITY Act builds on the foundation laid by the GENIUS Act, which focused specifically on payment stablecoins.
Pivotal bipartisan staff meetings have been taking place since at least December 2025, with the pace accelerating as the August recess looms.
What this means for investors
Prediction markets currently give the CLARITY Act roughly a 28-30% chance of actually becoming law. The banking industry’s resistance, partisan divisions, and the pressure of the 2026 midterm elections continue to complicate final agreement. With only two Democrats supporting the bill in committee, Senate leadership needs to flip at least five more votes to clear a filibuster.